Seddon Homes steps in to help first time buyers about to fall victim to rise in stamp duty threshold

Seddon Homes has stepped in to help first time buyers who fall victim to the end of the stamp duty holiday on March 24.

It will to pay the tax for hard-pressed first timers who may otherwise miss the chance of securing their dream home.

The announcement coincides with the launch of a new show home at Seddon’s Greenway development, off Oaklands Road, Kersal, Salford, on February 24 and 25.

The 39 high spec three, four and five bedroom homes, in a central location between Salford and Manchester city centres, are built to high eco-standards to ensure comfort and low running costs.

With prices starting at £169,950, they fall well within the stamp duty holiday criteria.

A straw poll by Seddon has found that many first time buyers still don’t realise that the Government is about to end the so called ‘holiday,’ which for the past two years has allowed them to benefit from not having to pay tax on homes they purchase between the values of £125,000 and £250,000.

When the Government scraps the scheme next month, buyers will not only have to find the purchase price, but potentially have to pay thousands of pounds in stamp duty as well.

What’s more, as only a few weeks remain to the deadline, even if buyers were to set the wheels in motion for a purchase today, some still might not complete in time to beat it.

Denis Maddock, Seddon Homes sales and marketing director, said: “That’s why we have stepped in with an offer to pay the tax for buyers grappling with an increasingly tight budget but desperate to secure their first home.

“There has not been a lot of publicity about the swiftly approaching end to the stamp duty holiday, and so many first timers remain unaware of it. The result could catastrophically affect their ability to buy, dashing their hopes of finally making it onto the property ladder.

“At Seddon we have done everything possible to help first timers in the recent difficult economic climate. Now we are pushing the boundaries further by acting to help those for whom it may be impossible to complete a purchase before the March 24 deadline. We will pay their stamp duty for them.”

The move could prove a boon to first time buyers, especially at Greenway, where Seddon Homes also participates in the Government’s FirstBuy initiative.  The scheme requires people buying their first property to find a deposit of just five per cent, instead of the usual 20 to 25 per cent.

Under the pioneering scheme, 20 per cent of the deposit for a new Seddon home can comprise an equity loan funded jointly by the Government’s HomeBuy agency and Seddon Homes. The loan is interest free to first time buyers for five years, who pay it back either when they sell the property or after 25 years.

Denis added: “In practice, it means people new to the property market only need to find enough savings to pay a five per cent deposit up-front.

“We already have part exchange schemes and Seddon’s own Springboard shared equity initiative to help potential buyers at Greenway. Now with the government’s commendable FirstBuy package, and our offer to assist with stamp duty, Greenway represents incomparable value, whether you are a first time buyer or a part of a family looking to move up the ladder.”

Each property at Greenway boasts a host of energy saving features, which it is estimated will ensure running costs are only half of that of a similar size property built 20 years ago. Additional features include home office wiring, outdoor water butts and internal recycling bins underlining the development’s eco credentials.

Denis said: “Visitors to the new show home will see for themselves how these properties are designed to appeal to modern families keen to keep costs of living low while still enjoying the benefits of a stylishly designed, contemporary home.”

Prices at The Greenway at Unity Quarter start from £169,950. The marketing suite is open Thursday to Monday from 10am-5pm.  For more information phone 0161 708 0627 or visit www.seddonhomes.co.uk